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THURSDAY, NOVEMBER 26, 2009
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Investors Storm Housing Market

Aim to take advantage of current low prices

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(Newser) – Investors are snatching up cheap houses, hoping to turn a profit when the market picks up, the Wall Street Journal reports. Some are foraging far and wide for potential purchases; others are locals who know the ins and outs of the area market. Investors often make all-cash offers, helping them beat out would-be homeowners looking for new digs.

“Foreclosures are low-hanging fruit at the moment,” says one investor, though competition among buyers is getting tighter. Still, that may change when banks end a moratorium on foreclosures this year. And when investors start selling, supply could once again soar. “All this investor buying isn't depleting supply, it's only shifting it around,” says one.

A sold sign hangs outside an existing home that was for sale in Bainbridge Twp., Ohio on Monday, April 27, 2009.
A sold sign hangs outside an existing home that was for sale in Bainbridge Twp., Ohio on Monday, April 27, 2009.   (AP Photo/Amy Sancetta)
A house with a pool is advertised for under $80,000 in Stockton, Calif., Friday, March 13, 2009.
A house with a pool is advertised for under $80,000 in Stockton, Calif., Friday, March 13, 2009.   (AP Photo/Marcio Jose Sanchez)
In this April 30, 2007 file photo, a Centex Homes sign indicates that a house is sold in a subdivision in Lewisvile, Texas.
In this April 30, 2007 file photo, a Centex Homes sign indicates that a house is sold in a subdivision in Lewisvile, Texas.   (AP Photo/LM Otero)
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3 comments
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uplink
May 20, 09 7:31 AM CDT
anyone who thinks the housing problem is anywhere near over just isn't paying attention. another round of ARM adjustments is coming, banks are holding back 600,000 foreclosed homes because to put them on the market will reduce already low home prices even further. home prices are projected to fall at least another 20% in the coming year. and all of this is going to cause a huge problem for small banks who are about to eat huge amounts of commercial properties. if this makes you want to buy a house, go for it. buy two. Reply
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IN RESPONSE:
Snowleopard
May 20, 09 1:58 PM CDT
I've been considering buying a house in the next few months just because prices have dropped so far that it would be cheaper to buy than to rent at this point. I wouldn't be surprised if prices were to drop another 10% or so here in portland though.
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Fondue
May 20, 09 9:02 AM CDT
I'm beginning to believe that penalizing misfortune is just a bad idea. But I have no solutions. Reply
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